Summary
- London’s blue-chip index pulled back after setting records earlier this week, with financials and energy leading losses. 1
- Fresh UK GDP data showed just 0.1% growth in Q3, keeping December BoE cut odds elevated; sterling edged higher. 2
- Stock-specific swings were sharp: 3i Group tumbled, Aviva fell after new targets, while Burberry and Wizz Air rallied; Persimmon rose on stronger forward sales. 1
Market snapshot
The FTSE 100 fell around 1% on Thursday, snapping its run of record closes, as weakness in financials and energy stocks overshadowed pockets of consumer and travel strength. Some ex‑dividend moves also tugged on the index into the close. 1
Macro drivers: growth, sterling, and rate‑cut odds
The UK economy expanded by 0.1% in Q3—half the pace economists expected—with September output dented by the Jaguar Land Rover cyberattack that slammed car production. Markets responded by leaning further toward a December rate cut from the Bank of England, with rate‑cut probabilities hovering in the ~80% area. The pound nonetheless ticked up about 0.2% versus the dollar. 2
Biggest movers on the day
3i Group (III) — sharp sell‑off
The private‑equity investor skidded more than 14%—and as much as 17% at one point—as management struck a cautious tone on new deals and October trading cooled at Action, its key retail holding. It was one of the steepest single‑day declines in years. 1
Aviva (AV.) — targets raise… but shares fall
Aviva unveiled upgraded medium‑term goals—~11% EPS CAGR (2025–2028), >£7bn cash remittances (2026–2028), and £225m cost synergies from the Direct Line integration—with capital synergies of >£0.5bn. The market reaction was cool, sending the shares lower on the day despite guidance to resume larger buybacks in 2026. 3
Burberry (BRBY) — first growth in two years
Burberry’s early turnaround under CEO Joshua Schulman delivered its first quarter of comparable sales growth in two years (up 2%), lifting the stock more than 8% as China returned to growth and the brand refocused on heritage outerwear. 4
Wizz Air (WIZZ) — profits up, shares climb
Wizz Air reported a ~26% first‑half operating profit jump and cut capacity/revenue ambitions for winter to protect yields; investors focused on the profit beat and operational progress, pushing the shares higher. 5
Homebuilders and housing — split signals
RICS’ October survey showed buyer enquiries and agreed sales weakening into the budget, a sign of softer demand. Even so, Persimmon rose after reporting a 15% rise in forward sales to £2.79bn and reaffirming guidance. 6
Miners and commodities — gold helps, oil hurts
Precious‑metals miners outperformed as gold touched a three‑week high on firmer Fed cut bets after the U.S. government reopened, while energy lagged as oil prices drifted on U.S. inventory builds and a swelling‑surplus narrative into 2026. 7
Why it mattered today
Two forces pulled London in opposite directions. Domestically, tepid growth (and a softer housing pulse) kept rate‑cut hopes alive—a tailwind for rate‑sensitives—but sterling’s bounce and the energy slump weighed on index heavyweights. Corporate‑specific news then amplified moves: 3i and Aviva knocked financials, while Burberry and Persimmon steadied consumer‑facing pockets. 2
The policy and data path ahead
- Autumn Budget: 26 November 2025 — fiscal choices are central to growth and sector sentiment. 2
- Inflation (ONS): October CPI lands 19 November, 07:00 — key input for December BoE. 8
- Bank of England decision:18 December 2025 — markets currently price high odds of a cut. 9
Stock‑by‑stock, sector‑by‑sector digest for 13/11/2025
- Financials: 3i’s slump dominated; life insurers tracked lower with Aviva softer despite upgraded targets. 1
- Energy: Oil majors underperformed as Brent held near the low‑60s after larger‑than‑expected U.S. crude builds and surplus forecasts. 10
- Consumer/Luxury:Burberry outperformed on returning growth; strength here offset some broader risk‑off tone. 4
- Travel:Wizz Air rallied on improved profitability despite a trimmed winter outlook. 5
- Housing: RICS survey cooled, but Persimmon’s order book and forward sales supported the group. 6
Outlook
With growth flat and the BoE poised to act, near‑term UK equity direction likely hinges on: (1) how the Autumn Budget balances consolidation with growth incentives; (2) the inflation print next week; and (3) global risk appetite as oil searches for a floor and gold stays bid on policy hopes. In the meantime, dispersion will stay high—company news is doing the heavy lifting.
